HR Transformation

at

Attock Refinery Limited

Asif Saeed

Attock Refinery Limited

Rawalpindi, Pakistan

asif@arl.com.pk

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4. Our Philosophy

2. Organizational Change – General View

5. Stepping Stone- Psychological Contract

6. Promoting HR Best Practices at ARL

8. Key Lessons Learned

7. Change Impact Analysis

3. Why Change At ARL?

1. Introduction and Background of ARL

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INTRODUCTION AND BACKGROUND OF ARL

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• ATTOCK REFINERY LIMITED

• NATIONAL REFINERY LIMITED

• PAKISTAN OILFIELDS LIMITED

• ATTOCK PETROLEUM LIMITED

• ATTOCK CEMENT PAKISTAN LIMITED

• ATTOCK GEN LIMITED

• ATTOCK HOSPITAL (PVT.) LIMITED

• ATTOCK INFORMATION TECHNOLOGIES SERVICES (PVT.) LIMITED

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ARL is a member company of Attock Group of

Companies, a fully integrated group covering all segments

of oil and gas industry from exploration to production, and

refining to marketing of a wide range of petroleum

products in Pakistan. ARL is strategically located up-

country in the north of Pakistan and caters to the

petroleum products requirements in its region of location

and beyond.

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History A

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• Since its commissioning in 1922, ARL has passed through various

stages of transformation and stood the test of time through war and

peace.

• From batch distillation stills of 2,500 barrels per day (BPD), today it has

grown into a modern state-of-the-art refinery with a capacity of 43,000

BPD.

• It was subsequently converted into a Public Limited Company in June

1979 and is listed on the three Stock Exchanges of the country.

• The company is also registered with the Central Depositary Company of

Pakistan (CDC). 5

VISION

To be a world class and leading organization continuously

providing high quality diversified environment friendly energy

resources and petrochemicals.

MISSION

We will utilize best blend of state-of-the-art technologies, high

performing people, excellent business processes and synergetic

organizational culture thus exceeding expectations of all

stakeholders.

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Our success will not be a matter of chance, but of commitment to the

following enduring beliefs and values that are engrained in the way we

think and take actions to pursue a climate of excellence:

Integrity &

Ethics

Integrity, honesty, high ethical, legal and safety standards are

cornerstones of our business practices

Quality We pursue quality as a way of life. It is an attitude that affects

everything we do for relentless pursuit of excellence

Social

Responsibility

We believe in respect for the community and preserving the

environment for our future generations and keeping National

interests paramount in all our actions.

Learning &

Innovation

We embrace lifelong learning and innovation as an essential catalyst

for our future success. We believe in continuous improvement and to

seize opportunities inherent in change to shape the future

Teamwork We believe that competent and satisfied people are the company’s

heart, muscle and soul. We savour flashes of genius in organisation’s

life by reinforcing attitude of teamwork and knowledge sharing based

on mutual respect, trust and openness

Empowerment We flourish under an ecosystem of shared understanding founded on

the concept of empowerment, accountability and open

communication in all directions

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ORGANIZATIONAL CHANGE –GENERAL VIEW

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• From a current state to a desired future state

• Includes Both

– organizational change management processes

– Individual change management models

Organization

Individual

Change

Approaches

Teams

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WHY CHANGE AT ARL?

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– Age inertia

– Technology –Processing Capability

– Competition-New Refineries

– Deregulation of Petroleum Sector

– Stringent Product Specifications

– Retention of Trained Human Resource

– Exports-New Markets

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– Diversification of Operations

– Corporate Social Responsibility

– Profit/Shareholder’s value

In 2005, ARL management vowed to transform its corporate culture

from comfort zone to performance based organization

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OUR PHILOSOPHY

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• To own change as a way of life

• Continuous improvement and to seize

opportunities inherent in change to shape the

future was the bottom-line of this process

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STEPPING STONE- PSYCHOLOGICAL CONTRACT

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Why employee make expectation???

Why the management cares for them???

THINK !!

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PROMOTING HR BEST PRACTICES AT ARL

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• Company Wide Climate Surveys

• Promoting Open Communication

• Embedding Core Values from the Grass Root Levels

• Introducing Formal Coaching, Counseling & Mentoring

• Forming Help Desks in different areas

• Intra/ Inter departmental meetings to improve better

Coordination

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• Start of Formal Career & Succession Planning of staff

featuring cross functional rotation

• Strengthening of Induction Process

• Synchronization of T & D with Career Planning

• Start of Performance Improvement Program through

cross functional teams

• Implementation of Structured rotation of Manpower

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• Revamping of Grievance Handling Procedure

• Inculcating learning culture through Conferences

• Skill Development Programs

• Transformation & communication of HR policies

• Strengthening of Performance Management System

Employee

Relations

Manual

Attock Refinery Limited

Copyright ® 2008 Attock Refinery Limited. All rights reserved

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• Organizational Restructuring & Manpower Planning

• Empowerment through revision in Company wide Limits

of Authority

• Revamp of the entire recruitment process

• Revision of Employment terms and Conditions

• Adjustment in compensation practices

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• Strengthening of CBA Management Relations based on

mutual respect and principles

• Revamping Outsourcing Procedures

• Implementation of Rewards & Recognition Procedures

• Alignment in Refinery Timing & Holidays

• Improvement in Working Conditions

• Promoting family involvements through different events

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CHANGE IMPACT ANALYSIS

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• Key Performance Indicators

– Employee Turnover

– Behavioral Safety Audits

– Safe-man-hours

– Training Hours

– Removing Anomalies in Employment terms

– Employee Grievances Received

– Reduction in Lead time of Annual Appraisals Announcements

– Process Improvement Suggestions

– Reduction in Recruitment Lead Team

BAROMETER FOR CHANGE INITIATIVES

Employee

Relations

Manual

Attock Refinery Limited

Copyright ® 2008 Attock Refinery Limited. All rights reserved

Copy right ® 2007 Attock Refinery Limited. All rights reserved

Key Performance

I ndicators Catalog

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– Exit Interviews

– Post & After Surveys Feedbacks

– Review and Implementation of Corporate Targets

– Winning of HR Best Practices Awards

– Formation of different Committees to ensure the smooth implementation of change program at ARL

BAROMETER FOR CHANGE INITIATIVES

Employee

Relations

Manual

Attock Refinery Limited

Copyright ® 2008 Attock Refinery Limited. All rights reserved

Copy right ® 2007 Attock Refinery Limited. All rights reserved

Key Performance

I ndicators Catalog

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KEY LESSONS LEARNED

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– First the People then the strategy.

– Goals and values alignment is the key.

– Confront the brutal facts of the game.

– Respond to technological changes with thoughtfulness and creativity.

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– Sustainable transformations follow a predictable pattern of buildup and breakthrough.

– Keep everyone to remain focused on the plan.

– Top Team has to “walk the talk”.

– Reward risk-takers, innovators and learners.

– Hire well (4E+P).

– Be flexible and trust your people.

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– Build a top team that fosters innovation and focuses on growth.

– Budgeting (Breaking the rituals).

– Power of differentiation

– Empowerment

– Identifying change agents

– Extend our networks to share, learn and consolidate our resources.

– Create mentors who are exceptional role models 29

- Larry Bossidy, former Chair and CEO of Honeywell

THANKS

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